Comcast Corporation (CMCSA), Google Inc (GOOG): Cable Has to Keep up With Fiber or Face the Consequences

Obstacles

The major obstacle for services like Verizon FiOS and Google Fiber has to be the cost. Comcast and Time Warner have established bases from which to work with their tiny year-by-year service increments, but Google and Verizon had to start afresh.

It has been estimated that each home accepting Google’s Fiber will cost around $6,000 to $8,000 to get going–that’s no small investment. With the TV service included, and at the top rate, it would take Google five and a half years before they start seeing a profit from a house, that’s a big risk to be taking.

Bottom Line

Google Inc (NASDAQ:GOOG) will likely continue on with their Fiber service. It won’t spread across the country quick, but as time moves on and infrastructure grows then I’d expect to see the expansion rates increase, especially if costs go down.

With Google expanding, Verizon may see the chance to help out with fiber build out, and the two could end up with a solid partnership, never say never.

An expansion of fiber based Internet to the masses could leave Comcast without a leg to stand on when it comes to selling Internet. This company has to keep moving at a pace that keeps both Google and Verizon at least a couple of steps back over the long haul. The Internet is here to stay, and the cable companies should start treating it as such or they’ll be left behind like AOL once was.

The article Cable Has to Keep up With Fiber or Face the Consequences originally appeared on Fool.com and is written by Ash Anderson.

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